Questerre Energy Corporation
TSX : QEC
OSLO STOCK EXCHANGE : QEC

Questerre Energy Corporation

May 15, 2009 00:15 ET

Questerre Announces Major Breakthrough in Quebec in First Quarter

CALGARY, ALBERTA--(Marketwire - May 15, 2009) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Questerre Energy Corporation ("Questerre" or the "Corporation") (TSX:QEC) (OSLO:QEC) reported today on the operating and financial results for the first quarter of 2009.

"We had a major breakthrough this quarter in Quebec", commented, Michael Binnion, President and Chief Executive Officer of Questerre. "The three well tests from a single Utica zone over our acreage have largely addressed our remaining technical concerns about this play. It has validated our belief that the Utica shale will be commercialized with horizontal wells. Early results from other zones in the Utica and shallower Lorraine were also very encouraging. With further engineering work, we are more confident in the potential for stacked shale plays that could, if successful, ultimately reduce F&D costs to under $1.00 an mcf."

Highlights

- Continued success with shale appraisal programs in the St. Lawrence Lowlands, Quebec

-- Vertical wells tested at rates of 300 mcf/d - 800 mcf/d from a single zone within the Utica formation

-- Prototype horizontal wells tested at rates between 100 mcf/d - 800 mcf/d from the Utica

- Development of conventional assets in Antler and Greater Sierra deferred in current commodity price environment

- Cash flow for the quarter of $1.06 million with average daily production of 1,049 boe/d

- Maintained financial strength with working capital of over $51 million and no debt

Mr. Binnion, further commented, "We suspended our capital programs at Antler and Greater Sierra this winter to improve our return of capital. Our balance sheet remained strong with a working capital surplus of over $51 million, consisting primarily of cash and equivalents."

Cash flow from operations for the first quarter of this year was $1.06 million as compared to $3.94 million in 2008. The decrease reflects the significantly lower commodity prices and volumes due to the deferral of development drilling in the quarter. The Company reported a working capital surplus of $51.76 million at March 31, 2009 as compared to a deficit of $4.51 million at March 31, 2008.

Petroleum and natural gas revenue in the first quarter of 2009 was $3.72 million (2008: $7.23 million) mirroring the spot pricing for oil and natural gas during the period. Production averaged 1,049 boe/d (2008: 1,274 boe/d) with crude oil and NGLs accounting for 44% of volumes (2008: 24%).

This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.

This news release does not constitute an offer of securities for sale in the United States. These securities may not be offered or sold in the United States absent registration or an available exemption from registration under the United States Securities Act of 1933, as amended.

Questerre is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.

Contact Information

  • Questerre Energy Corporation
    Anela Dido
    Investor Relations
    (403) 777-1185
    (403) 777-1578 (FAX)
    Email: info@questerre.com